Mexico’s Watchdog Opposes Move Against Renewables

Mexico’s competition watchdog (Cofece) weighed in heavily against the recent decision by the electrical grid operator (Cenace) to deny future connection permits to new solar and wind projects, ostensibly to ensure continuity of power supply through the COVID-19 crisis. 

The Cenace action has sent shockwaves through the sector, threatening new projects in the pipeline and shaking nerves just weeks before the planned May 27 adjudication of Mexico’s first private sector energy auction, which is being organized by Bravos Energía. 

“The agreement has created a new source of uncertainty for participants in our auction,” Bravos’ CEO Jeff Pavlovic told BNamericas. “We’re going to wait a few weeks for everyone to analyze and size their impacts before publishing a final schedule for the auction.” 

While legal action from private companies now seems inevitable, Cofece has become the first public entity to take issue with the policy. 

Responding to the Cenace action, Cofece issued a strongly worded opinion Thursday, May 7, directed to the energy ministry, Cenace, and the sector regulator (CRE), arguing that the policy change is a clear violation of the operator’s mandate to provide unbiased access to the system. 

By not establishing a clear time-frame for the pandemic-related policy, Cofece stated Cenace was risking “indefinitely preventing new wind and photovoltaic plants from participating in the market, by suspending the pre-operational tests that are required for them to come into operation.”

Full Content: BN Americas

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